Dulux maker rejects improved bid from US rival PPG

The Dutch maker of Dulux paints, Akzo Nobel, rejected an improved €22.4bn (£19.4bn) takeover proposal from PPG Industries yesterday, but faced investor pressure to start talks with its US rival. Akzo said the new PPG proposal made on Monday, worth 88.72 euros per share in cash and shares, was not good enough even to merit engaging with the bidder. An earlier, 9 March offer of 83 euros per share valued the company at £17.7bn.

Several of the company's shareholders have said they see merit in a deal and encouraged management to enter talks. Like many Dutch companies, Akzo has strong defences against hostile takeovers and politicians have voiced concerns over the bid. Pressed by reporters on shareholders' views, Chief Executive Ton Buechner said: “The issue is we have a number of stakeholders. It's also not in the interests of shareholders.” Elliott Advisors, which has a more than 3 per cent shareholding in Akzo, said that while it considered PPG’s second bid “inadequate, it views such level of bid price to be a credible basis for engagement”.